Any advanced customer who buys online can tell how quickly businesses have become “customer-centric”. And the first step headed towards becoming a customer-centric firm is through customer opinion and study.
Reasons to conduct Quantitative Market Research
- Research is the first step for a effective marketing operation, be it a new product launch, sales pitch positioning or leading a data-oriented statistical analysis.
- By conducting an online quantitative market research, insights about marketing activities like updating the website, social media page management or newsletters can also be received.
- By implementing Quantitative Market Research, questions like “Who are currently buying my products/services?”, “Why are the others not buying my product?”, “How to reach out to my potential clientele?” are answered.
- Quantitative research?starts with survey creation, designing, and distribution. After the survey is sent out to the right people, data collection and analysis has to be done to get desired insights.?
Significance of Quantitative Market Research
As the name implies, Quantitative market research focuses on the quantity and structured collection of data. It began with face-to-face techniques and now has evolved into?online surveys like those provided by SMRC. It is often used to capture data like customer behavior, size of the market, identifying reasons for product repurchase. This type of market research is usually based on a large number of samples.
For instance, “Based on your overall experience with us, how likely are you to recommend us to a friend or colleague?” – This one question, the?Net Promoter Score?question, changed the game for businesses across the Globe. With just 1 question, companies are now able to collect real data from real customers on how well their organic word-of-mouth referrals can grow their business and how less/more they have to spend on paid advertising and promotions or which area of their product or service quality requires improvements.
Quantitative market research can be conducted by primary and secondary research types. Some of the most common ways to conduct a quantitative market research are:
Primary Quantitative Market Research Techniques
Primary techniques are the most common forms of conducting quantitative market research. Some of the most common and widely used forms are:
- Surveys:?Traditionally, surveys were conducted using paper-based methods and have gradually evolved into online mediums. Closed-ended questions form a major part of these surveys as they are more effective in collecting quantitative data. The survey comprises of options which they think are the most appropriate for a particular question. Surveys are integral in collecting feedback from an?audience?which is larger than the conventional size. A critical factor about surveys is that the responses collected should be such that they can be generalized to the entire population without significant discrepancies.?Quantitative market research is conducted under two broad buckets of the frequency they are administered at:
- Cross-sectional research survey:?Cross-sectional market research?is a quantitative market research method that analyzes data of variables collected at one given point of time across a?sample?population. population or a pre-defined subset. This research method has people who are similar in all demographics but the one that is under research.
- Longitudinal research survey:?Longitudinal market research?is a quantitative market research method where research is conducted over years or decades on a target demographic markets or certain individuals to collect statistical data.?
- One-on-one Interviews:?This quantitative data collection method was also traditionally conducted face-to-face but has shifted to telephonic and online platforms. Interviews offer a marketer the opportunity to gather extensive data from the participants. Quantitative interviews are immensely structured and play a key role in collecting information.
- Face-to-Face Interviews:?An interviewer can prepare a list of important questions in addition to the already asked survey questions. This way, interviewees provide exhaustive details about the topic under discussion. An interviewer can manage to bond with the interviewee on a personal level which will help him/her to collect more details about the topic due to which the responses also improve. Interviewers can also ask for an explanation from the interviewees about unclear answers.
- Online/Telephonic Interviews:?Telephone-based interviews are no more a novelty but these quantitative interviews have also moved to online mediums such as Skype or Zoom. Irrespective of the distance between the interviewer and the interviewee and their corresponding time zones, communication becomes one-click away with online interviews. In case of telephone interviews, the interview is merely a phone call away.
- Computer Assisted Personal Interview:?This is a one-on-one interview technique where the interviewer enters all the collected data directly into a laptop or any other similar device. The processing time is reduced and also the interviewers don’t have to carry physical questionnaires and merely enter the answers in the laptop.
Secondary Quantitative Market Research Techniques
Secondary techniques to conduct quantitative market research are a means to validating a hypothesis or drawing conclusions from?empirical data?and primary data. This research method is a form of observational market research where historical data helps validate the statistical observations of the primary data. For example: mapping the purchase of snowblowers to the months where sales spike with historical data of inclement weather helps manage supply and demand as well as trained personnel during those months.
5 Steps Needed For Creating a Successful Quantitative Market Research Survey:
- Specify the Goal:?Why do you want to conduct this market research? There should be a clear answer to this question so that the steps that follow are smoothly executed.
- Have a Plan Sketched Out:?Every step that needs to be achieved has to be put to paper like the tools that are required to carry out the research,?survey templates, the target audience etc. This may vary from project to project.
- Collect Data:?This is the most crucial step in this market research. Data is collected through 3 main mediums: online surveys, telephone interviews or email surveys.
- Analysis of Collected Data:?Once the data is gathered, it needs to be analyzed. Various methods of analysis like SWOT Analysis, Conjoint Analysis, TURF Analysis can be carried out to get best results.
- Compile Reports:?A report consisting of graphs, charts, and tables should be created so that the person in-charge of the report can incorporate the observed changes.?
